College billing error

[Juddy]

My son attends an Arkansas state college. Last semester he was on a full scholarship but lost it due to grades. In January we applied for and received a student loan to cover the amount not paid by his other financial aid. I did not receive an exact dollar amount of the cost of the semester b/c he had to change dorms and that affected the cost.In the next few weeks my children reported several calls from the college asking where my son was living. I called the university back and let them know that he was living in ZYX hall although no one had any idea who was calling or why. In Feb I received a letter stating that his fees were not paid - since I thought they had been paid I called the financial office and was told that he needed to come to the cashiers office to sign over the loan checks to "pay" his fees. He went to the cashiers office and the gave him checks totaling $600.00. I called the financial office insisting that a mistake had been made. The woman looked up the account and said it was paid in full. When I persisted she laughed and said "Believe me if he owed money they NEVER would have given him checks" He was instructed to return in April to pickup two more checks which he did. Three weeks before school was out they discovered that his paperwork was lost and that he had not been charged for room and board. They freely admit that the mistakes made were theirs and that my son and I would not have known there was a problem since his electronic dorm key and meal card continued to work throughout this time. Also they agree that he nor I ever made an attempt to hide his housing situation. However, they are insisting that we make full restitution on his room and board. I wrote a letter to the Dean of Housing explaining that since they had actually had possession of the funds and refunded them as excess payments that I felt I should not be held liable. He insists that we make a payment arrangement although I have to date received no notice as to the total amount due nor any type of accounting of our financial payments and charges. Where do we stand legally?

 

[I AM ALWAYS LIABLE]

<BLOCKQUOTE><font size="1" face="Verdana, Arial">quote:</font><HR>Originally posted by Juddy:
My son attends an Arkansas state college. Last semester he was on a full scholarship but lost it due to grades. In January we applied for and received a student loan to cover the amount not paid by his other financial aid. I did not receive an exact dollar amount of the cost of the semester b/c he had to change dorms and that affected the cost.In the next few weeks my children reported several calls from the college asking where my son was living. I called the university back and let them know that he was living in ZYX hall although no one had any idea who was calling or why. In Feb I received a letter stating that his fees were not paid - since I thought they had been paid I called the financial office and was told that he needed to come to the cashiers office to sign over the loan checks to "pay" his fees. He went to the cashiers office and the gave him checks totaling $600.00. I called the financial office insisting that a mistake had been made. The woman looked up the account and said it was paid in full. When I persisted she laughed and said "Believe me if he owed money they NEVER would have given him checks" He was instructed to return in April to pickup two more checks which he did. Three weeks before school was out they discovered that his paperwork was lost and that he had not been charged for room and board. They freely admit that the mistakes made were theirs and that my son and I would not have known there was a problem since his electronic dorm key and meal card continued to work throughout this time. Also they agree that he nor I ever made an attempt to hide his housing situation. However, they are insisting that we make full restitution on his room and board. I wrote a letter to the Dean of Housing explaining that since they had actually had possession of the funds and refunded them as excess payments that I felt I should not be held liable. He insists that we make a payment arrangement although I have to date received no notice as to the total amount due nor any type of accounting of our financial payments and charges. Where do we stand legally?<HR></BLOCKQUOTE>


My response:

This is actually quite simple. Despite the fact that your son received refunds, and despite the fact that the school was in error, the fact remains that your son did, in fact, receive a service - - i.e., housing.
"But for" the error, he would have paid for the housing. The only difference is when he pays.

To do otherwise, from a legal standpoint, would allow your son what is called an "unjust enrichment." All because there was a bookkeeping "stafu" does not mean that your son can take advantage of that fact. He did have housing - - and, it was the school's housing. He owes the money.

IAAL


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